Why is the property market in Morocco so appealing?

Investment opportunities in Spain are very popular for property buyers and investors and this will always be the case. However, the shorter term growth is lower than it was and tax liabilities can be high. Moroccan property prices on a square metre comparison basis can be as much as 40% lower than mainland Europe but are increasing rapidly. Property prices in Morocco are still low in comparison to much of mainland Europe but are increasing rapidly. Many small bespoke, luxury property developers and even some of the large Spanish property companies have now turned their attention to Morocco.

International property purchasers find Morocco increasingly attractive due to consistent capital growth performance in the region of 15% per annum. Add to this the kingdom’s Vision 2010 tourism which is injecting 10 billion Euro in order to attract 10 million tourists per annum. The accompanying opening of the skies to low cost, frequent air routes has brought sharp increase in demand for rental properties which is of course great news for “Buy to Let” investors.

One of the reasons buying property in Morocco is such an attractive investment location is the various tax breaks:

• Low capital gains tax after the property has been held for five years and none to pay after 10 years;
• No property tax for the first 5 years;
• Zero inheritance tax and with
• Predictions of continued growth of 15-30% per annum (Based on 2007 figures by Homes Overseas Magazine)

Marrakech enjoys the most frequent air routes from the UK and Europe. Its long history of European influence, mixed with exotic Moorish culture, makes Marrakech a favourite holiday destination.

“Today Morocco is a progressive and safe investment target. New government initiatives are successfully improving the infrastructure and tourist economy to create an exciting new emerging market which is only just coming to the attention of shrewd worldwide property investors.

“As with all emerging property markets, it is essential to take advantage of the best prices available to early investors. Morocco property currently offers investors excellent prospects and a perfect early investment vehicle in which to generate good rental yields and excellent capital appreciation,” Louise Hillcoat says.

Notes to editors:

Marrakech’s attractions
• Shopping from designer chic to Berber artefacts
• Stunning Golf Courses, Riding Clubs, Waterskiing, Tennis Clubs, Hunting, Hiking, Camel treks, Culture.
• Over 300 days of sunshine a year, hot days, cool desert nights
• French, Spanish & English widely spoken as well as Berber and Arabic.
• Sightseeing – historic attractions, beautiful gardens, magnificent countryside
• Accessibility – only 3 hours by plane from major UK airports
• A unique culture, so close to home

Economic Factors
• Property prices up to 40% less than other European resorts.
• Low cost of living - experience a luxury lifestyle at little expense.
• Booming property market.
• Between 0% and 20% tax on any capital gains dependent on length of ownership.
• 0% inheritance tax to family.
• No annual property tax for first five years for private purchasers.
• Rental occupancy reaching 85% most years during the Peak Season with demand rising.
• Vision 2010 project to improve the infrastructure, including new roads, coastal resorts, trains, hotels, shopping malls.
• Increased tourism generated by the Vision 2010 project will create a huge requirement for rental accommodation.
• Capital growth around 15% - 30% based on last year figures (30% Homes Overseas Magazine).
• Open Skies policy activated on 1st Jan 2006 has allowed low cost airlines to service Morocco with cheaper and more frequent flights.
• Safe investment – Notary supervised property registration similar to systems in France and Spain
• Massive Dubai based developers Emaar have several projects at various stages of planning and completion, including a four season ski and leisure facility in the Atlas Mountains, just 40 minutes from Marrakech.